Environmental tax: what rate to apply to methane emissions

Press service of the State Tax Service of Ukraine, published 08 July 2026 at 12:20 Chapter: News

Taxpayers who emit methane into the atmosphere from stationary sources must calculate environmental tax at the 146.50 UAH rate per 1 ton of emitted methane.

This approach is based on norms of the Tax Code of Ukraine, according to which methane belongs to the group of pollutants “hydrocarbons”. It is for this group that the specified environmental tax rate is established by Paragraph 243.1 Article 243 of the Tax Code.

Classification of methane as a hydrocarbon is confirmed by both its chemical formula (CH₄) and legislative provisions. In particular, the Law of Ukraine “On oil and gas” defines natural gas as a mixture of hydrocarbons, and Rules for development of oil and gas fields directly classify gas (methane) as a hydrocarbon. In addition, the Gas transportation system code stipulates that natural gas contains at least 90% methane.

Reminder! Business entities activities of which are related to emissions of pollutants into the atmosphere by stationary sources carry out such activities on the basis of emissions permit or integrated environmental permit. It is in these documents that the types and volumes of pollutants are determined.

Amounts of the environmental tax are determined by payers independently every quarter, based on the actual volumes of emissions and tax rates established by the Tax Code of Ukraine.

Reference:

Law of Ukraine as of 16.07.2024 № 3855-IX "On the integrated prevention and control of industrial pollution".

Law of Ukraine №2665-III as of 12.07.2001 “On oil and gas”.

Order of the Ministry of Environmental Protection and Natural Resources of Ukraine № 448 as of 27.06.2023 “On approval of the instruction on requirements for execution of documents substantiating volumes of pollutant emissions into the atmospheric air by stationary sources”, registered in the Ministry of Justice of Ukraine on 23.08.2023 under № 1475/40531. 

Order of the Ministry of Ecology and Natural Resources of Ukraine № 118 as of 15.03.2017 “On approval of the Rules for development of oil and gas fields”.

Gas transportation system code, approved by Resolution of the National Commission for State Regulation in the Energy and Utilities Sectors № 2493 as of 30.09.2015, registered in the Ministry of Justice of Ukraine on 06.11.2015 under №1378/27823.